There are a number of reasons to go into a particular business. Maybe you prefer to be your own boss. Maybe you really want to set your own hours and be the master of your domain. Perhaps you like having control over how much you earn or maybe you just really enjoy doing a certain something (that people will pay you to do).
While all those reasons are perfectly fine, for many that do open their own business it is a bit more involved than that. They want to be in something that will make money. Some want it to be a lot of money really quick, while others prefer to have something more stable and reliable over a long period of time. These days the trick can also be in figuring out something that is as close to recession proof as possible.
One business that comes close to fitting the bill is the self storage industry.
Recent news reports show that a number of companies have been buying up self storage facilities as fast as they can. An Austin firm has pledged to spend close to a $150 million in the next year. Another spent $53.9 million in the last quarter for a total of just under $90 million on the year. Another announced that it spent $126 million in self storage facility acquisitions for 2010. However, those numbers pale in comparison to what another company has recently announced they plan to do.
Axxcess Capital Ventures LLC and former Universal Self Storage Acquisitions president Troy Downing have teamed up with plans to spend $1 billion to acquire as many self storage units as they can in 2011. That’s right-- $1 billion.
“We believe this is an excellent time in the real estate cycle to acquire self-storage properties...a return to positive growth fueled by a slowly improving economy and Americans shifting to smaller, more affordable housing and needing more rentable storage space for their possessions...Entrepreneurs launching small businesses and online marketers needing to warehouse inventory are added demand factors,” Downey says.
For now Downey says they will be focusing on different niche markets for their acquisitions. Some of the ones he mentioned were facilities that are located near military bases, typical areas where people own second homes, and resort type areas where people tend to engage in a lot of outdoors activities and may need storage for things like boats and trailers during the off-season.
If someone is willing to spend a billion dollars to get into the self storage industry there must be something to it. Maybe it’s time for you to get in to!
Sources Used:
“Axxcess JV Plans $1B in Self-Storage Acquisitions.” GlobeSt.com; 06 January 2011.
“Further Proof that Investing in the Self Storage Industry is a Good Idea.” Self Storage Industry News; 03 January 2011.
"Virtus Real Estate Purchases 20 Self-Storage Properties in 2010.” Yahoo! Finance; 28 December 2010.
"U-Store-It Announces 2010 Investment Activity." Marketwire; 06 January 2011.
"Strategic Storage Trust, IncAcquires Fifth Las Vegas Property, Caps $126 Million in Acquisitions in 2010." Yahoo! Finance; 30 December 2010.